Holden, which like other manufacturers has suffered from the high Australian dollar and rising production costs, threatened to shut down its local operations altogether unless the government committed to a further assistance package beyond 2015.

Mr Devereux will pledge to stay in the country until at least 2022.

Holden will continue local production of the Commodore until 2016 when it will be replaced by one of its parent company's US models, it was reported last night.